Many clients sign estate planning documents without paying much attention to the clauses they contain. That is no surprise; the documents are complex, and death and disability are issues that no one wants to face. One clause that is easily overlooked is how incapacity could be determined—and how
the client could be stripped of the authority to serve in a fiduciary
or trustee capacity. That’s what happened to NBA team owner Donald Sterling, who is in a court battle in part because of that trust clause which most clients are likely gloss over.
There are several lessons that an estate planning team, including personal financial planners and attorneys, can learn from this case—and pass on to clients. They include:
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